This month we can see the US 10 Year Bond Yield rise to a 2014 high of 3.048 level. This is the strong upside extension resistance, and so far we have a rejection from here.
From the weekly chart we have more insights why this monthly rejection is actually strong. We can see the pin bar formed last week below the 3.048 level and this could mean a downside extension for a retest of the recently broken wedge line and the strong upside support 2.560-2.600 zone.
Using the top-down trading technical analysis we have reached the daily chart where we can recommend a sell trade entry for this instrument targeting 2.800-2.850 zone of the uptrend support and a swing down target level. Stops should be just above the 3.050 level. The triggers are the long bearish shadow candle formation and a negative RSI (13) divergence besides the key long-term resistance level rejection.
Happy trading! (click on the chart to enlarge it)
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